Southern Taxis ordered to pay almost $100,000 to former drivers

Southern Taxis has been ordered to pay almost $100,000 for breaching employment standards. Photo / Getty Images

Southern Taxis has been ordered to pay almost $100,000 after it was found to have breached a number of employment standards.

The Employment Relations Authority (ERA) awarded four of the company's former drivers a share of $97,753.05 in unpaid holiday pay and minimum wages.

Brian Carnahan, George Kennedy, Gary Powell and Toni Powell all worked for Southern at various times between October 2013 and December 2016. The business has since been sold.

Labour inspector David O'Shea alleged in relation to the drivers that Southern had: failed to provide employment agreements for the drivers, failed to maintain minimum wage and time records, failed to pay minimum wages, contravened the Holidays Act 2003 (payment of holiday pay), made unlawful deductions from wages owed.

In response to the labour inspector's statement of problem, Southern advised that its driver were independent contractors and considered them "commission agents". Southern told the inspector that they never provided employment agreements to its "commission agents" but it did provide contractor agreements to the four drivers.

Southern provided the labour inspector with log books (referred to as "green slips") and a list of current and former drivers.

However, from the evidence provided, the labour inspector established that the four drivers were in fact employees and said Southern clearly knew and understood the difference between contractors and employees.

The labour inspector accepted there was no common intention in terms of employment status and the drivers were clear they would be paid 40 per cent of the gross fare take.

The authority heard Southern provided the drivers with a vehicle to use as a taxi, for which all expenses were paid and they were not charged a "depot fee" by Southern, which contractors were customarily charged, and had no control over fare settings or takings.

The drivers were also given payslips, did not file their own tax returns and were not invoiced by Southern for ACC levies.

Anthony Ware, the new owner of Southern, said he bought the business 18 months ago and had since increased the fleet and introduced new contracts for all the drivers.